ICSM Business Membership Group: fighting late and non-payment - News in Brief: Scottish Professional Football Club on the brink of administration; women are better than men in business survival; insolvency figures for August; and bankrupt pro rugby club set for a return
By Harry Mottram: Covid lockdowns are now a distant memory but the shadows of its effects continue to blight UK business along with a bad Brexit deal meaning there are still problems for industry as the latest figures from the Insolvency Service reveal.
Crisis in Inverness
Scottish Caledonian Thistle football club is fighting to stay afloat having set up a crowdfunder appeal to raise £200,000 by October 16th. Failure to do so will mean the Inverness club is insolvent. The causes of he crisis include relegation to Division One, historic debt and a failure to sell the club to a buyer. Meanwhile trade creditors are owed £600,000
In a report to shareholders this week Interim Chairman Panos Thomas wrote: “The 2023 accounts lodged late at Companies House revealed a loss of nearly £600k for the 2022/2023 season and as the auditors were preparing to commence the audit for season 2023/2024, where the anticipated loss is expected to rise to £1.2m, serious question marks were highlighted, regarding the club’s solvency and ability to continue to trade.”
Women run firms less likely to go bust
A survey by KSA Group Limited, insolvency practitioners has found that firms run by women are a much safer bet for suppliers as male run companies are more likely to go bust. In their findings published on Company Rescue’s website they found that insolvency rates are 71% higher in male run companies. It was found that the insolvency rate of male-dominated businesses was 0.7% and those in female-dominated businesses was 0.41%.
Insolvencies up year on year
The Gazette has published the latest statistics for company insolvencies for August. After seasonal adjustment there were 1,953 company insolvencies in August 2024. This was 9% lower than in July 2024, but 15% higher than the number in August 2023. In August 2024 there were: 1,823 creditors’ voluntary liquidations (CVLs); 279 compulsory liquidations; 112 administrations; 20 company voluntary arrangements (CVAs); 0 receiverships. In August 2024, CVLs accounted for 79% of all company insolvencies. The number of CVLs was 7% lower than July 2024 and 15% lower than August 2023, after seasonal adjustment. The number of compulsory liquidations was 12% lower than in July 2024, but 6% higher than in August 2023 after seasonally adjustment. The number of administrations was 25% lower than in July 2024 and 40% lower than in August 2023 after seasonally adjustment. The number of CVAs was 20% lower than in July 2024, but 80% higher than in August 2023 after seasonally adjustment.
Bankrupt pro rugby club sale complete
Worcester Warriors went bust in 2022 and dropped out of the Premiership as a result after failing to pay bills and were wound up in the High Court by the Inland Revenue owing around £25m. Atlas group has been in volved in buying the club but there has been a number of issues and in May the club changed hands in a pre-pack deal to Junction 6 Limited. With no rugby for 18 months the club now hope to play in the new look Championship (tier 2 of the rugby pyramid) next season. It is worth noting that they club owed hundreds of thousands of pounds to local businesses when it collapsed.
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